Strategic human resource management or SHRM is a fairly new term which has caught the fancy of many a company. It is being increasingly used nowadays both by people related to the fields of management and human resource or HR.

Since SHRM is an offshoot of human resource management or HRM, we need to first understand what is HR management? Traditionally HR refers to the workforce that a company comprises of and management of this workforce is known as HR management. Hence the work of HRM includes:

  • The ability to strategically maximise the output of the human resource of a company,
  • The ability to handle all tasks related to human resource like recruitment and discharge of employees, payrolls etc.
  • The ability to appraise and rate the performance of employees so as to enable
    • Better recruiting and hiring practices,
    • Proper development of pre-existing employees by giving them proper training,
    • Maintaining and upholding the quality of the work force by
      • Motivating them to perform better and
      • Handsomely rewarding deserving performances.

Strategic Hrm Hr Management

What is SHRM

Getting to know what is HR management will make it easier to understand the concept of SHRM. SHRM is said to be that branch of HRM which forms a bridge linking HR to the vision and mission of a company so as to

  • Improve the performance of the business and
  • Develop a good organisational culture so that it can foster growth by
    • Innovative initiatives,
    • Flexibility of thoughts and ideas and
    • Providing a competitive edge.

The prominent features of SHRM include:

  • It provides an absolute linkage between the policies and practises of the company’s HR and the overall strategic aims and environment of the company.
  • It also helps to link interventions of individual HR to different organisational schemes thereby creating a mutually supportive environment.
  • Devolution of much of the duties and responsibilities of HR management to subordinates and juniors.

Difference between SHRM and HRM

In the recent years there has been a definite shift in the workings of the HR management teams which has traditionally been called “an island unto itself”. A need was felt by HR management personnel to justify their existence by connecting it with the company’s goals and objectives. This resulted in SHRM which primarily focussed on long-term strategic programs developed with the idea of aligning the workforce with the company’s aims. Thus its primary goal can be said to be to bring about an increase in employee productivity by focussing on finding solutions to business obstacles not related to human resources.